AUSTAL LIMITED AUSTAL LIMITED AUSTAL LIMITED AUSTAL SHIPS IMAGE MARINE AUSTAL SHIPS IMAGE MARINE AUSTAL SHIPS IMAGE MARINE AUSTAL USA OCEANFAST AUSTAL USA OCEANFAST AUSTAL USA OCEANFAST
THE AUSTAL GROUP THE AUSTAL GROUP THE AUSTAL GROUP ! Austal Limited is an integrated aluminium shipbuilder based in Western Australia; ! The company operates from three construction yards in Henderson, WA and one in Mobile, Alabama in the USA; ! Austal’s product range includes passenger and vehicle passenger ferries, cruise yachts, luxury motor yachts, dinner cruise and live- aboard vessels, patrol and offshore support craft, and defence vessels over 100 metres in length; ! The company sells internationally under four brands: Austal Ships, Image Marine, Oceanfast and Austal USA
AUSTAL GROUP BRAND DIVISIONS AUSTAL GROUP BRAND DIVISIONS AUSTAL GROUP BRAND DIVISIONS AUSTAL LIMITED Image Marine Oceanfast Austal Ships Austal USA 30% Bender Shipbuilding USA Vessels < 50 M Luxury Motor Vessels to 100+ M US Domestic Yachts Market Passenger Vehicle Ferries Ferries Full Austal Passenger Ferries Shipbuilding Live-aboard Defence Range Vessels Applications (except Motor Patrol Craft Yachts) Cruise Yachts Offshore Boats Patrol Craft Offshore Boats
STRATEGY PERSPECTIVES STRATEGY PERSPECTIVES STRATEGY PERSPECTIVES ! Building shareholder value by targeting profitable markets and building long- term stable revenue streams; ! Growth strategy based on diversification of products and identification of new markets to reduce cyclical risk; ! Internal focus on production efficiency and costs; ! Long-term goal of building a separate revenue stream from service and maintenance of Austal vessels in global locations
VESSEL DELIVERIES VESSEL DELIVERIES VESSEL DELIVERIES SINCE ASX LISTING LISTING SINCE ASX SINCE ASX LISTING Image Marine Acquisition Oceanfast Acquisition & Austal USA Establishment 25 20 15 No. of vessels 10 5 0 1998 1999 2000 2001 2002 *2003 *2004 Pax Ferries Car Ferries Live-aboards Cruise Motor Yachts Patrol/Crew Boats * Based on current order book
VESSELS UNDER CONSTRUCTION VESSELS UNDER CONSTRUCTION VESSELS UNDER CONSTRUCTION Austal Ships • 2 x 69 metre cruise yachts for Tahiti; • 86 metre vehicle-passenger catamaran for North America; • 66 metre vehicle-passenger catamaran for Fred Olsen; • 49.9 metre vehicle-passenger ferry for Kangaroo Island. • 56 metre passenger ferry for Tahiti Image " 2 x 40 metre passenger catamarans for Norway; " 2 x 41 metre harbour cruise vessels for Hong Kong; " 3 x 22 metre coast guard patrol boats for Kuwait.
VESSELS UNDER CONSTRUCTION VESSELS UNDER CONSTRUCTION VESSELS UNDER CONSTRUCTION Oceanfast " 54 metre full displacement steel hull motor yacht; " 56.5 metre full displacement steel hull motor yacht; " 58 metre high speed luxury motor yacht; " 53 metre luxury motor yacht. Austal USA " 34 metre dinner cruise vessel for Miami; " 43.5 metre passenger ferry for New York.
FINANCIAL PERSPECTIVES FINANCIAL PERSPECTIVES FINANCIAL PERSPECTIVES ! Listed on the ASX in December 1998 and is now capitalised at $153 million; ! Track record of profits despite cyclical nature of the industry and short-term troughs; ! Balance of revenue streams across key product and geographic markets; ! Demonstrated ability to build long-term revenue and earnings in difficult, cyclical industry; ! Strong focus on generating shareholder value and returns; ! Current contract order book of $455 million: FY 2002 - $325 million FY 2003 - $340 million FY 2004 - $106 million
2003 HALF YEAR RESULTS 2003 HALF YEAR RESULTS 2003 HALF YEAR RESULTS ! Net loss of $13.5 million for half year to 31 December 2002; ! Cost overruns at Oceanfast and Austal USA ! Delay in delivery of 86 metre fast ferry for CATS to enable port facilities to be completed ; ! Anticipated full year loss; ! Traditional Austal/Image commercial business has remained profitable with 2003 half year EBIT of $9.25 million.
OPERATIONAL CHANGES OPERATIONAL CHANGES OPERATIONAL CHANGES FOR IMPROVED PERFORMANCE FOR IMPROVED PERFORMANCE FOR IMPROVED PERFORMANCE Oceanfast " Standardisation of contract specifications; " Application of more efficient production practices; " Structural changes to project management to better suit demands of current and future projects.
IMPROVED PRODUCTION IMPROVED PRODUCTION IMPROVED PRODUCTION EFFICIENCIES AT OCEANFAST EFFICIENCIES AT OCEANFAST EFFICIENCIES AT OCEANFAST Improved production techniques and efficiencies are evident from the decrease in aluminium and steel fabrication overruns at Oceanfast, after the first 10 months of production of each vessel ALUMINIUM STEEL Cost of overruns Cost of overruns Hull 79 Hull 77 Hull 75 Hull 78
OPERATIONAL CHANGES OPERATIONAL CHANGES OPERATIONAL CHANGES FOR IMPROVED PERFORMANCE FOR IMPROVED PERFORMANCE FOR IMPROVED PERFORMANCE Austal USA " Implementation of an increased understanding of regulatory requirements for U.S. built vessels which will result in lower design and production costs; " Continued focus on increasing the workforce and implementation of training programs to enhance the skill base.
AUSTAL REVENUE HISTORY AUSTAL REVENUE HISTORY AUSTAL REVENUE HISTORY A$ million 50 150 250 350 450 1998 1999 2000 2001 2002
AUSTAL FINANCIAL HISTORY AUSTAL FINANCIAL HISTORY AUSTAL FINANCIAL HISTORY Operating profit before tax Net profit after tax A$ million 0 5 10 15 20 25 30 35 40 1996 1997 1998 1999 2000 * 2001 ** 2002 Average * Operating profit before tax adversely effected by foreign exchange loss of $9.5M ** Tax favourably impacted by prior year tax adjustment of $9.8M
AUSTAL FINANCIAL HISTORY AUSTAL FINANCIAL HISTORY AUSTAL FINANCIAL HISTORY Dividend Earnings per share Cents 0 5 10 15 20 1999 2000 2001 2002 Average
FINANCIAL POSITION FINANCIAL POSITION FINANCIAL POSITION December 2002 June 2002 $M $M TOTAL CURRENT ASSETS 101.7 142.3 TOTAL NON-CURRENT ASSETS 107.3 90.8 TOTAL CURRENT LIABILITIES 87.6 94.0 TOTAL NON-CURRENT LIABILITIES 0.5 4.5 NET ASSETS 120.9 134.6 INCLUDES CASH OF 51.0 48.3
NON- -CURRENT RECEIVABLES CURRENT RECEIVABLES NON NON-CURRENT RECEIVABLES NON- -CURRENT CURRENT DEC 2002 JUNE 2002 NON RECEIVABLES $M $M RECEIVABLES Austal Group Management 15,463 15,103 Share Plan Provision for loss on AGMSP (4,084) Conferry (loans – payable over 8,800 2,116 the next 4 years) Euroferrys (10% preference 7,729 8,464 shares redeemed out of profit) TOTAL 27,908 846
AUSTAL GROUP INVENTORY AUSTAL GROUP INVENTORY AUSTAL GROUP INVENTORY December 2002 June 2002 $M $M TOTAL WORK IN PROGRESS 43.6 80.7 NB: Decrease is due to the delivery of an 86 metre vehicle-passenger ferry for Conferry
CASH ASSETS CASH ASSETS CASH ASSETS 60 50 40 $ millions 30 20 10 0 31-Dec-02 28-Feb-03 30/06/2003 31/12/2003 (Forecast) (Forecast)
AUSTAL GROUP AUSTAL GROUP AUSTAL GROUP MARKET COMPETITIVENESS MARKET COMPETITIVENESS MARKET COMPETITIVENESS Total Market number of Estimated Market Share vessels* Vehicle Ferries 26 Passenger Ferries 85 Patrol Boats 223 Motor Yachts 81 Mini Cruise 8 0 10 20 30 40 50 % % % % % % * Based on orders published from start January 2001 to end February 2003 (Source: Internal Austal research primarily from trade publications and competitor announcements)
AUSTAL - - The Future The Future AUSTAL AUSTAL - The Future Austal Ships and Image Marine - Commercial and Defence Austal Ships " Consistent revenue and profit performance: " Continued product diversification in addition to ferries : - cruise - defence - patrol boats (eg. RAN patrol boats) Image Marine " " Continued specialisation in core products
AUSTAL - - The Future The Future AUSTAL AUSTAL - The Future Austal Ships and Image Marine - Commercial and Defence Continued development: - meet operators requirements; - address the needs of new applications for high speed vessels; - maintain technological advantage over other shipyards Product development evident through an increase in orders for the medium- sized passenger ferry market
AUSTAL - - The Future The Future AUSTAL AUSTAL - The Future Oceanfast " Increased share of the lucrative luxury motor yacht market " Interest from benchmark quality product i.e. “Aussie Rules”
AUSTAL - - The Future The Future AUSTAL AUSTAL - The Future Austal USA " Existing orders a significant step in US yard becoming a major supplier of aluminium vessels to the US commercial market; " " Development of facilities and workforce to participate in future major US military projects e.g. Littoral Combat Ship and Theatre Support Vessel programs
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